TELA Bio Reports 26% Revenue Growth to $20.2 Million in Q2 2025

TELA Bio, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 26% to $20.2 million, compared to $16.1 million in the same period last year. For the first half of 2025, revenue reached $38.7 million, an 18% rise from $32.7 million in the first half of 2024. The growth was attributed to the addition of new customers, increased international sales, and the U.S. launch of larger-sized configurations of its OviTex PRS product line. Despite the revenue growth, the company reported a net loss of $9.9 million for the second quarter, a decrease from a loss of $12.6 million in the prior year, while the loss for the first half of 2025 was $21.2 million, up from $18.3 million in the same period last year.

Operationally, TELA Bio saw a 17% increase in unit sales of its OviTex products, selling 5,178 units in the second quarter of 2025 compared to 4,410 units in the same quarter of 2024. The company also reported a 40% increase in sales of OviTex PRS, with 1,362 units sold in the latest quarter. However, the average selling prices for hernia products decreased due to a shift in product mix towards smaller-sized units. The company’s gross profit for the second quarter was $14.1 million, yielding a gross margin of 70%, slightly up from 69% in the previous year.

In terms of expenses, TELA Bio's total operating expenses rose to $23.2 million in the second quarter, a 2% increase from $22.6 million in the same quarter of 2024. Sales and marketing expenses remained relatively stable, while general and administrative expenses increased by 14% due to higher professional fees and compensation costs. Research and development expenses decreased slightly, reflecting a reduction in headcount. The company’s accumulated deficit as of June 30, 2025, stood at $379.9 million, up from $358.7 million at the end of 2024.

Strategically, TELA Bio has focused on expanding its product offerings and market presence. The company launched new configurations of its OviTex products, including the OviTex IHR Reinforced Tissue Matrix for inguinal hernia procedures, which was introduced in the U.S. in April 2024 and in Europe in June 2025. Additionally, TELA Bio entered into a distribution agreement with Advanced Medical Solutions Limited for LiquiFix Hernia Mesh Fixation Devices, further diversifying its product portfolio. The company continues to evaluate partnerships for complementary products and aims to enhance its research and development efforts to support future growth.

Looking ahead, TELA Bio anticipates continued investment in its sales and marketing initiatives to drive growth in existing and new markets. The company expects to incur operating losses in the near term as it seeks to expand its customer base and product utilization. As of June 30, 2025, TELA Bio had cash and cash equivalents of $35.0 million, which it believes will be sufficient to meet its capital requirements for at least the next 12 months. However, the company remains cautious about potential macroeconomic challenges, including inflationary pressures and supply chain disruptions, which could impact its operations and financial performance.